An Analysis of the Machinery Accounts of Polonius Ltd The Information Concerning Polonius's Machinery Accounts Should Be Shown in 2020

An analysis of the machinery accounts of Polonius Ltd. during 2020 follows: $\begin{array}{ll}\text{} & \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad Accumulated \quad \quad \quad\quad Book & \\\text{} & \quad \text{ \(\underline{\text{Machinery }}\) } \quad \quad \quad \quad \text{\(\underline{\text{ Dapraciation }}\) } \quad\quad\quad \text{\(\underline{\text{ Value }}\) } & \\\text{Balance, Jan 1,2020.............................................................. } & \quad \quad \text{\$500,000 } \quad \quad \quad \quad \quad \text{\$125,000 } \quad \quad\quad \quad \text{\$375,000 } \\\text{Purchases of new machinery in ......................................} & \quad \quad \text{\ \quad \quad \quad \quad \quad \quad \quad\quad \quad \text{ } } \\\quad \quad \quad \text{2020 for cash ....................................................} & \quad \quad 200,000 \text{\ \quad \quad \quad \quad \quad \quad — \quad \quad\quad\quad\quad \quad \text{200,000} } \\\text{2020 depreciation.......................................................................} & \quad \quad \text{\ — \quad \quad \quad \quad \quad \quad \quad \(\underline{\text{ 100,000 }}\) \quad \quad\quad \quad \(\underline{\text{ (100,000) }}\) } \\\text{ Balance, Dec 31, 2020 ...............................} & \quad \quad \text{\$700,000 } \quad \quad \quad \quad \quad \text{\$225,000 } \quad \quad\quad \quad \text{\$475,000 } \\\end{array}$


The information concerning Polonius's machinery accounts should be shown in their statement of cash flows (indirect method) for the year ended December 31, 2020, as a(n)

A) subtraction from net income of $ 100,000 and a $ 200,000 decrease in cash flows from financing activities.
B) addition to net income of $ 100,000 and a $ 200,000 decrease in cash flows from investing activities.
C) $ 100,000 increase in cash flows from financing activities.
D) $ 200,000 decrease in cash flows from investing activities.